Imad Mohsen Buys Handful Of Shares In Parex Resources

Investors who take an interest in Parex Resources Inc. (TSE:PXT) should definitely note that the President, Imad Mohsen, recently paid CA$10.83 per share to buy CA$252k worth of the stock. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.

Our free stock report includes 4 warning signs investors should be aware of before investing in Parex Resources. Read for free now.

The Last 12 Months Of Insider Transactions At Parex Resources

The Independent Chairman of the Board, Wayne Foo, made the biggest insider sale in the last 12 months. That single transaction was for CA$4.7m worth of shares at a price of CA$23.26 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (CA$11.09). So it is hard to draw any strong conclusion from it.

Happily, we note that in the last year insiders paid CA$1.7m for 127.91k shares. But they sold 220.00k shares for CA$5.1m. In total, Parex Resources insiders sold more than they bought over the last year. The average sell price was around US$23.25. We are not joyful about insider selling. But we note that the selling, on average, was at well above the recently traded price of CA$11.09. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Parex Resources

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Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Parex Resources insiders own 1.7% of the company, worth about CA$18m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Parex Resources Tell Us?

It's certainly positive to see the recent insider purchases. But we can't say the same for the transactions over the last 12 months. We don't take much heart from transactions by Parex Resources insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. Overall they seem reasonably aligned. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To that end, you should learn about the 4 warning signs we've spotted with Parex Resources (including 1 which is a bit concerning).

Of course Parex Resources may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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